West Wants Only Quick Bucks From Africa, While China Invests for Win-Win Cooperation

‘West wants only quick buck from Africa, while China invests for win-win cooperation’

Below are excerpts from an interview that I did with RT on the significance of the trip by China President, Xi Jinping to Africa this week. I also commented on the dramatically different policy approach that China has towards Africa, than that of the United States. The past several US administrations have failed to construct a strategic policy to assist African nations in developing their economies.

'West wants only quick buck from Africa, while China invests for win-win cooperation'

Chinese President Xi Jinping is on a trip to Africa in a bid to establish deeper trade ties. On Monday, he arrived in South Africa for a state visit, which will be followed later this week by his participation in the 10th BRICS summit in Johannesburg. Earlier, the Chinese leader visited Rwanda and Senegal, which is the first West-African country to be involved in China’s “Belt and Road” infrastructure project.

Beijing has been expanding its presence in Africa in recent years, investing $39 billion in the continent in 2017.

Political analysts told RT that countries in Africa are turning to China because of US government policies.

RT: What do you think Xi Jinping will be hoping to get from his tour of Africa?

City view of Bahrain's capital Manama © Hamad I Mohammed

Lawrence Freeman: I think this is an indication by President Xi of how important they view their collaboration with Africa. He is going to be visiting four countries and they are going to end up at the BRICS Summit in South Africa. This is a continuation for the last several years of the ‘Belt and Road’ policy in Africa. And it has been a real boost for African development policies, especially in the areas of infrastructure, energy, roads and rail. And this indicates that they are going to continue along that policy for sure.

RT: Do you think China’s interests in Africa are purely economic or are they also about greater geopolitical influence?

LF: China, especially under this president, has a view of a win-win cooperation, that countries can work together for the common benefit of a mankind, that they will benefit from economic cooperation. The African countries certainly will. There has been no infrastructure built in Africa since the colonial period. The West refused, the US state has refused, Europe has refused. So, China building its infrastructure which you see in Kenya, in Nigeria, Ethiopia and other places, this is a real positive step for the development of Africa. And I think the Chinese want to help Africa. They will make money, of course. The Africans will improve their economies. And the people’s standard of living will improve and hopefully we’ll eliminate the poverty in Africa.

RT: Many Western countries are wary of investing in Africa due to instability and security problems. But China doesn’t seem to have been put off by these concerns. Why is that the case?

LF: China under this president has a vision for the future. They develop themselves and they develop their neighbors and they develop other countries around the world. So, the whole concept of the ‘Belt and Road’ is counter to geopolitical thinking, it is countries working together, they call it win-win. And the problem is that the West has no vision for development of Africa, has refused to develop Africa, so therefore they attack Africa, they complain about Africa’s loan, they complain about the debt. The debt under Western countries, the IMF and the World Bank far exceeds anything that the Chinese have in terms of debt with African countries. So, the West has to get over their problems, get over the geopolitical thinking, stop demonizing China and actually if the president was intelligent in this question, he would join the ‘Belt and Road’ because if China and the US joined together, we could transform the continent and eliminate the poverty and hunger. And that is what I am trying to do.

The US influence on Africa was already dwindling well before Trump came into the play. And it will continue to dwindle because of some of his comments, his attitude towards Africans, and his position on Africa in general. He is only interested in military bases. And Africans, I am afraid, are very much interested in partnership and those who take them seriously. And like a liberalized continent, it is voting with its feet and it is changing the US in every sector, that I know of, in favor of the Chinese. And China already had a huge presence and influence and that influence has just grown to levels for which even if the Americans were to try now unlikely to ever catch the Chinese in my lifetime. – Ayo Johnson, journalist & founder of Viewpoint Africa

The US has a very small outlook towards Africa and the rest of the world. They do not want to invest in the infrastructure, which is a long-term investment but it improves the entire economy. And they haven’t. The basic attitude of the US… is to make money, to make double-digit profits overnight. They are not interested in the long-term development of a country. That is why the US and the West built no railroads, they were built with China’s help, China has built the new hydro-energy plants, China has built new ports. And there are many more things that they are working on across Africa. So, the problem is that the West is not really thinking how to develop this continent, they are thinking in terms of how to make some fast bucks…

China-Africa Cooperation is Mutually Beneficial

 July 19, 2018

The cooperation between Africa and China is a great success in international cooperation. As the traditional friendship between China and Africa becomes stronger and stronger, there is all indication that China-Africa cooperation shall be more forward-looking.

This cooperation is widely regarded as a major success in today’s international system and is widely regarded as a model of mutually beneficial cooperation with constructive and positive significance. China-Africa cooperation is also a model for South-South cooperation.

As a constructive new model, it has promoted the progress of the African development agenda, helped Africa to industrialize, develop economies, reduce poverty and inject vitality into the overall development of the continent.

The Forum on China-Africa Cooperation (FOCAC) has given Africa an alternative to North-South cooperation. It has given an extra voice for developing countries in the international arena. It is of great significance to the realization of the UN Millennium Development Goals.

The economic complementarity between China and Africa is strong and growing. Chinese companies are very active on the African continent. At present, there are more than 2,000 Chinese enterprises investing actively in Africa. They train workers and solve employment problems, increase local taxes and improve the living standard of the people. China’s investment in mining, infrastructure and telecommunications has given an immediate boost to the development of Africa.

At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars. China helps Africa build infrastructure, invest and open factories in Africa, provides Africa with a large number of high-quality and cheap goods. It also buys goods from Africa to promote its economic development.

The development of infrastructures such as highways, railways, and bridges will help the long-term development of African countries. This is the cornerstone for Africa’s development.

Africa has also significantly benefited from increased exports of raw materials to China where there is strong demand. China has promoted the demand for oil, natural gas and other raw materials, which has a direct or indirect positive effect on the economic development of African export-oriented countries.

Some western opinion advocates that China’s manufacturing industry has affected the development of African manufacturing industry. This statement is actually exaggerated. There is little evidence to prove that China’s manufacturing industry has negatively affected the manufacturing industry in Africa.

In fact, it has supported industrial development as already stated.  The challenge of African industrial development cannot be attributed to China.

In addition to trade and investment, China also provides assistance in other areas for the development of Africa. For example, China helps Africa to enhance its capability of food security and energy security, develop communication networks and improve medical facilities and participates in peacekeeping operations in Africa actively. Through these measures, China has promoted friendly exchanges between two sides and safeguarded peace and stability in Africa.

We foresee a China-Africa cooperation that will establish cooperative relations in various fields of sustainable development to seek a distinctive and high-quality way for win-win cooperation between both sides and to build a stronger, more effective and more sustainable development partnership.

Original article

Forum on China-Africa Cooperation: Win for Africa’s Development

It’s Time for Africa

Alignment with China’s development vision heralds a new era of opportunity on the continent

By He Wenping- JULY 5, 2018

A Chinese engineer collaborates with Kenyan workers on the construction of the Mombasa-Nairobi Railway on April 9, 2016 (XINHUA)

As agreed by both China and Africa, China will host the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this September. Wang Yi, Chinese State Councilor and Foreign Minister, made the announcement on the sidelines of the Meeting of BRICS Ministers of Foreign Affairs in South Africa on June 4.

The upcoming summit will be themed Win-Win Cooperation and Join Hands to Build a Closer Community with a Shared Future for China and Africa. Wang said China and Africa will endeavor to integrate the Belt and Road Initiative, the 2030 Agenda for Sustainable Development of the UN, the Agenda 2063 of the African Union (AU) and the development strategies of various African nations to create more opportunities for mutually beneficial cooperation, and to open up new prospects for common development.

The First FOCAC Summit was held in Beijing in 2006, and 12 years on leaders from China and Africa will once again gather in Beijing to usher in a new era of Sino-African cooperation. This summit, the third in FOCAC’s 18-year history, demonstrates the value that China places on Sino-African ties and promises to drive the China-Africa friendship to new historic heights.

Proactive attitude

Since Chinese President Xi Jinping proposed the Belt and Road Initiative five years ago, more than 100 countries and international organizations around the world have shown interest, of which more than 80 have signed cooperation agreements with China involving Belt and Road projects. The initiative, consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the trade routes of the ancient Silk Road.

Africa is a continent rich in resources with great market potential, but it is in dire need of robust infrastructure. It is proactively participating in Belt and Road construction with other countries along the routes in the hope that its economy can make a leap.

As Wang said when he visited Africa in January, the African continent must be at the heart of the Belt and Road Initiative and must not be left behind by China or the wider world in terms of development.

FOCAC was established in October 2000, 13 years prior to the proposal of the Belt and Road Initiative. China pursues common, intensive, safe, open and green development in its cooperation with African countries, which neatly dovetails with its commitment to innovative, coordinated, green and open development that is for everyone at home. Nearly 18 years of evolution have established FOCAC as a symbol of international cooperation, which allows the organization to provide precious experience to the Belt and Road construction across different regions and fields.

Advancing interconnection

Inadequate infrastructure is a bottleneck that constrains Africa’s economic development. Poor transport facilities and substandard roads have created exorbitant costs in domestic and regional trade, as well as impeding foreign investment.

Financing for Africa’s infrastructure needs faces an annual shortfall of at least $20 billion. In addition, most African countries have a low level of industrialization, and the contribution of industry to their economies is correspondingly small. However, Africa is a continent with abundant resources, low labor costs and great market potential, while China has significant advantages in capital, technology and equipment, as well as a wealth of experience in transforming from an agricultural to an industrial society. At a time when China is undergoing a fundamental phase of economic transition and upgrading, there is plenty of high-quality capacity and advanced equipment and technology available for outward transfer, much of which is ideally suited to Africa’s needs.

Just as the Chinese people harbor the Chinese dream of national rejuvenation, the African people hold the African dream of achieving development and alleviating poverty. Connectivity and industrialization are essential preconditions and the only path toward the realization of this dream. The Belt and Road Initiative can work in harmony with Africa’s development strategy for the 21st century. It can provide new drive for the sustainable development of Sino-African relations and help Africa take a step forward, blazing a new trail for South-South cooperation.

China and the AU signed a memorandum of understanding (MOU) on infrastructure construction cooperation on January 27, 2015. According to the MOU, under the strategic framework of Africa’s 2063 Agenda, China will enhance cooperation with African nations on railways, highways, regional airlines and industrialization to promote African integration. Chinese enterprises have already launched construction projects in these fields in countries such as Ethiopia, Djibouti, Kenya and Nigeria.

For example, the Huajian Group, a shoe producer from Dongguan in south China’s Guangdong Province, began operating in the Ethiopia Oriental Industrial Park at the end of 2011. By the end of 2017, Huajian had become the largest private Chinese investor in Ethiopia, generating $122 million of foreign exchange income and creating 7,500 new jobs for the local population. The company produces over 5 million pairs of women’s shoes each year, accounting for more than 65 percent of the Ethiopian shoe industry’s total exports. On September 1, 2017, the Ethiopian Government awarded Zhang Huarong, Chairman of the Board of the Huajian Group, the honorary title of “Father of Ethiopia’s Industry” for his contribution to the country’s development. Inspired by its success in Ethiopia, the Huajian Group plans to invest in Rwanda, Nigeria and elsewhere in Africa in the future.

The China-built Nyerere Bridge, linking the business area of Tanzania’s largest city Dar es Salaam to the Kigamboni district across the Kurasini creek, is the largest cable-stayed cross-sea bridge in sub-Saharan Africa (XINHUA)

Driving force

At the FOCAC Johannesburg Summit in South Africa in December 2015, China and participating African countries agreed to carry out 10 major cooperation plans in the following three years. The ultra-intensive plans, worth around $60 billion, cover industrialization, agricultural modernization, infrastructure construction, finance, green development, trade and investment facilitation, poverty alleviation, public health, people-to-people exchanges, and peace and security. The foremost of these is cooperation on industrialization to promote the progress of African development. In order to facilitate this, the first China-Africa Capacity Cooperation Fund—worth $10 billion—has been set up, alongside the Special Loan for the Development of African Small and Medium-Sized Enterprises and the China-Africa Development Fund each with a capital of $5 billion.

Industrial cooperation between China and Africa has already begun to bear fruit. As one of the first African countries to join China in international industrialization cooperation, Tanzania has signed a framework agreement with China on supporting key projects of the country’s ongoing five-year plan.

The construction of infrastructure and industrial parks is also making rapid progress. China has assisted Africa in building several railway lines, including one connecting the port city of Mombasa in Kenya to its capital Nairobi, another connecting Addis Ababa, the capital of Ethiopia, to Djibouti, and a third connecting Angola and Nigeria.

As Kenyan President Uhuru Kenyatta said at the opening ceremony of the Mombasa-Nairobi Railway on May 31, 2017, the new line is “one of the cornerstones to Kenya’s journey of transformation to an industrial, prosperous and middle-income country.”

The author is a researcher with the Institute of West Asian and African Studies, the Chinese Academy of Social Sciences, and a senior researcher with the Charhar Institute

 

China and US Should Jointly Partner with Africa to Transform the Continent

It has been my firm belief for several years that, if China and the US jointly partnered with African nations, we can eliminate poverty and hunger across the continent. Development of Africa is not a “zero sum game.” Africa’s infrastructure deficit is estimated in the trillions of dollars for energy, rail, ports, roads, new waterways, and much more. There is no part of Africa that could not be developed, if the two largest economies worked with African nations. China’s Belt and Road Initiative is an excellent vehicle for such collaboration between Presidents Xi, and Trump. Below is a useful article reporting on US and Chines companies working together in Africa

AFRICA IN FOCUS

“American companies and Chinese Belt and Road in Africa”

Yun Sun 

“When it comes to Africa, it is no secret that the United States and China have very different philosophies. China adopts a more state-led approach, with state-owned enterprises and policy banks spearheading Africa’s infrastructure development. The U.S. is more willing to let private companies and the market take the lead on commercial development, while the U.S. government itself puts more emphasis on the continent’s capacity building and governance challenges…

“As China expands its Belt and Road Initiative (BRI) in Africa, government-level U.S.-China cooperation in Africa continues to be scarce. However, this trend contrasts sharply with the growing collaboration between Chinese and American companies in infrastructure projects on the continent. Indeed, although the Chinese projects and financing have the tradition of favoring Chinese contractors and providers, the technical advantages of some American companies have made them the beneficiary of the Chinese BRI campaign…”

Continue reading

 

Transaqua: Pan-African Project “Necessary to Restore Peace and Security in the Lake Chad”

“China’s deal with Italian firms will rescue Lake Chad”

What is Transaqua?

Last June, in Hangzhou in Zhejiang Province, Chinese construction giant PowerChina and the Italian firm, Bonifica SpA signed a deal about a regeneration project of Lake Chad.

The agreement includes carrying out feasibility studies on transferring water from River Congo in the Democratic Republic of Congo to replenish Lake Chad.

Due to less rainfall and increased irrigation, the Lake’s area has shrunk from 20,000 square kilometres to just 2,000 square kilometres. Other factors, include an influx of refugees fleeing the atrocities of the Boko Haram, have contributed to increased demand.

The proposed major water diversion scheme would involve channeling a small percentage of water from River Congo towards the north via a navigable canal.

Mohammed Bila of the Lake Chad Basin Commission explained that the Pan-African project is “necessary to restore peace and security in the Lake Chad region and for the promotion of navigation, industrial and economic development in the whole Congo basin.”

Map showing Lake Chad and River Congo.

Courtesy of Schiller Institute. The Transaqua project aims to move water from River Congo to Lake Chad. Schiller Institute. Schiller Institute Schiller Institute

He also highlighted that the movement of the water could feasibly be used to create hydro-electricity, as well as boosting regional trade, creating new economic infrastructure like river ports, and making new agro-industrial zones.

How is China involved?

PowerChina, a large state-owned enterprise in China that built the Three Gorges Dam, has committed US$1.8 million to finance to research studies for the initial stages of Transaqua.

The canal will effectively create a New Silk Road to Lake Chad and there are plans to have a service road and eventually a rail line run alongside the waterway, creating more infrastructure and access.

This is in keeping with the values of China’s Belt and Road initiative. Wang Hao, from the Chinese Embassy in Germany speaking at the Schiller Institute’s Development of Nations Conference, explained China’s decision to put forward the Belt and Road initiative.

He spoke of how China has learned from its own experience how important transport facilities are for the development of the economy. He quoted the Chinese saying: “To get rich, you must build a road first.” This is at the core of the Belt and Road initiative – infrastructure supports economy recovery and strength.

He highlighted that China accounts for two-thirds of the world’s total high-speed railway, with 25,000 kilometres. This infrastructure laid “a solid foundation for the rapid development of China’s economy”.

Facilities connectivity is one of the priorities of the Belt and Road initiative as China believes proper infrastructure is at the basis of economic development. This in part illuminates the reason behind China’s investment into Transaqua.

Mohammed Bila of the Lake Chad Basin Commission said Africa can become the next China if it invests in the Transaqua infrastructure with the support and partnership of China and Europe.

With investment so far of US$1.8 million from China and US$2.5 million from Italy, this project could “launch Africa on the road to economic growth, human security, industrialisation, peace, development and the attainment of the dreams of Pan-African leaders” such as Dr Kwame Nkrumah, former president of Ghana, who first proposed the project in 1964.

Why the “Fire and Fury” on China Trade

By William Jones

The world is on tenterhooks waiting for the next moves from the Trump Administration in terms of the draconian tariffs he has threatened to place on China as well as on a number of other countries, including our close neighbors Canada and Mexico. And the question remains for most people: Is he really intent on carrying out the threat (the first tariffs are to take effect on July 6) or is this merely an “in-your-face” negotiating tactic to cut a better deal for the United States? We probably won’t know until the last moment, but a number of things seem to be clear.

Why the “Fire and Fury” on China Trade?

 

Call for EU Summit with Chinese and African Governments to Undertake Crash Pan-African Infrastructure Program

Helga Zepp-LaRouche: ‘History Is Now Written in Asia: Europe Must Follow the Singapore Example’

June 15, 2018—Schiller Institute Founder and Chair Helga Zepp-LaRouche has put forward a bold new agenda for the June 28-29 European Union summit, necessary to further transform the world, in the wake of the Singapore summit of U.S. President Trump and North Korea’s Chairman Kim Jong-un. Her proposal concludes:

“If the Merkel government is still in place when this article appears, there is a very good way by which the present crises can be overcome—from the migrant crisis to the government crisis and the EU crisis. Taking the example set by the Singapore Summit—that real change is possible, and that the past does not determine the future—the German government should ensure that the agenda of the European Union summit on June 28-29 be quickly changed. EU cooperation with China’s New Silk Road initiative for the development of Africa should be made the sole subject on the agenda, and [President] Xi Jinping or [Foreign Minister] Wang Yi should be invited to attend, as well as some African heads of state who are already cooperating with China.

“If the EU summit, the Chinese government representative, and the African representatives then pronounce in a joint declaration the commitment to undertake a joint crash program for a pan-African infrastructure and development program, and promise all the young people of Africa that the continent will overcome poverty in a short time, such a declaration, due to the participation of China, would have all the credibility in the world in Africa, and would change the dynamic in all the countries towards definite hope for the future, and thus would immediately effect a change in the migrant crisis. It would also free the EU from its current crisis of legitimacy, and give the European nations a mission which would place the unity of Europe on a great new level.

“Will the heads of state and government of Europe manage to follow the example of Trump and Kim Jong-un? The prospective of developing Africa together with China, would also give President Trump the urgently needed opportunity to overcome the otherwise looming spiral of trade war, and to balance the [U.S.] trade deficit by increasing trade, primarily through investment in joint ventures in third countries.

“The crisis in Europe, the migrant crisis, the crisis of the German government—they have all assumed such dimensions, that the opportunity for a change of course in policy can absolutely be seized. Needed now, are the people to make it happen.”

Interview With Lawrence Freeman: The Time is Now For TRANSAQUA-to Save Lake Chad and Transform Africa

Transaqua is an inter-basin water project to transfer a sufficient flow of water from the tributaries of the Congo River to restore Lake Chad from its current diminutive size of 1500-2500 square kilometers to its 1963 level of 25,000 square kilometers. The Transaqua design is to create a navigable 2,400-kilometer canal that by gravity will deliver between 50 to 100 billion cubic meters of water to the Chari River in the Central African Republic, which is the primary tributary to Lake Chad. The channel will be created through a series of dams of the tributaries to the right of the Congo River.

Transaqua, the brainchild of Dr. Marcello Vichi of the Italian Bonifica engineering firm, was first proposed almost 40 years ago. Its unique feature lies beyond refurbishing Lake Chad, in restoring economic growth to the poor people living in the Lake Chad Basin This mega-project will create a super economic zone of trade and commerce between all the nations of the Congo river and Lake Chad Basins; potentially affecting one third of the entire African continent. In addition to the generation of desperately needed hydro-electric power, new roads will be built, new manufacturing-agricultural centers will be created, new fisheries will develop, and food production will expand with an additional 40,000 hectares of irrigated land.” Source: Lawrence Freeman

Africanagenda: Hello Mr Freeman, thank you for joining us today to discuss the Transaqua Project.

You are very well informed on this subject and since 2014 have been the Vice Chairman of the Lake Chad Scientific Committee. Earlier this year you spoke in Abuja, Nigeria at the International Conference on Saving Lake Chad. Could you tell us about the sense of optimism that this project is bringing to Africans? I believe this was a dream of Ghana`s President Kwame Nkrumah, that the Sahara Desert could bloom.

 

Heads of State of the Lake Chad Basin nations sign Abuja accord

L. Freeman :The endorsement of the Transaqua inter-basin water transfer project at the International Conference to Save Lake Chad held in Abuja from February 26-28 was a milestone for the entire African continent. Nigerian President, Muhammadu Buhari deserves credit for initiating this conference and his support over many years to recharge Lake Chad. This project would be the largest infrastructure project in Africa connecting a dozen African nations in a super economic zone of development. The Transaqua proposal has been known for several decades, but it was only at the Abuja conference that the Heads of States of the nations of the Lake Chad Basin Commission- (LCBC) officially decided to explore the feasibility of the inter-basin water transfer project. As a result of the conference, approximately $3.6 million will be allocated for the first ever feasibility study of Transaqua to be conducted jointly by PowerChina and Bonifica.

As the news of the success of this conference held in Africa spreads, it will create a wave of optimism across the continent. One reason is that African leaders are thinking big with a vision for the future, having taken it upon themselves to discuss and support such a transformative infrastructure project.

The Sahara Desert, the largest in the world-the size of the continental United States- can bloom if it has water. The loss of lake Chad, the largest body of water in the desert would be a catastrophe not just for those living in the Lake Chad Basin, but for the entire continent, and implicitly the world. Therefore, I am optimistic that the Abuja conference will be a turning point for Africa.

Africanagenda: Transaqua is unique.It is it the largest engineering project ever proposed and as the largest infrastructure project in the world it has the potential to radically transform the economy of the continent`s interior, not just in terms of agriculture but through industry. Could you explain to our readers how transformative Transaqua will be?

L.Freeman: The land area of all the nations that would be affected by Transaqua equals approximately one third of the African continent. The inter-basin water transfer project would create a navigable canal that would facilitate a new level of trade and commerce between the nations of the two basins: Congo River; and Lake Chad. Resulting in an increase in farming, manufacturing, fishing, electrical power, roads, and other related infrastructure.

Thanks in part to China’s New Silk road, African nations are presently engaged in the most intense level of development of infrastructure, most especially in new railways that potentially could cross the continent from Djibouti to Dakar. Plus progress is being made on several East-West highways that would also connect to South-North routes crossing the Sahara Desert.

image: The Schiller Institute

The combined effect of the completion of these infrastructure projects would create an economic renaissance for Africa that portends the elimination of poverty and hunger for hundreds of millions of Africans.

If you look at a map of Africa, you will see that Transaqua will travel northwest from the southeast corner of the Democratic Republic of the Congo through the Central African Republic, thus intersecting the East to West network of new railways and highways. The combined effect of the completion of these infrastructure projects would create an economic renaissance for Africa that portends the elimination of poverty and hunger for hundreds of millions of Africans.

 Continue reading

Chinese Economic Engagement in Africa: New Silk Road on the Continent

“The closest look yet at Chinese economic engagement in Africa”

June 2017
The closest look yet at Chinese economic engagement in Africa

Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.

In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.

Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.

Africa’s largest economic partner

In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.

We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.

Africa’s economic partners, including China, India, France, the United States, and Germany, based on goods trade, foreign direct investment, aid, and infrastructure financing

continue reading

Chinese Engagement, Investment and Trade With Africa

China’s New Silk Road–Belt and Road Imitative is providing indispensable investment and construction of infrastructure in Africa. Infrastructure development in energy, railways, roads, airports, and water management are critical for African nations to develop their agricultural and manufacturing sectors. Below are excerpts from the report: “The Belt and Road” in Africa 

Read entire report

“China’s close engagement with Africa continued through the succeeding decade and accelerated toward the end of the 1990s and into the 2000s. By 2008, China’s Export-Import Bank was funding more than 300 projects in 36 countries across Africa. The value of bilateral trade increased from US$6.5 billion in 1999 to US$73.3 billion in 2007 (Figure 1). According to the China-Africa Research Institute at Johns Hopkins University, by 2008 it exceeded US$100 billion, and it peaked at more than US$200 million in 2014, before slipping back in 2015 and 2016 in response to poorer global economic conditions. In 2009, China overtook the United States as Africa’s major trading partner. The largest African exporter to China from Africa in 2015 was South Africa, followed by Angola and Sudan. In the same year, South Africa was the largest African market for Chinese goods, followed by Nigeria and then Egypt.”

“In 2015, China investments into African infrastructure projects were three times the sum of those of France, Japan, Germany and India combined (Figure 7). The bulk of Chinese funding has been in the form of government-to-government loans, used then by the borrowing African governments either to develop the project itself, or to leverage it with private capital through a public-private partnership (PPP). As of the date of writing (late 2017), at least 76 PPP projects appear to be in the pipeline in African countries associated with BRI. Not all have values ascribed, but the 14 that do imply a cumulative investment of nearly US$6 billion for them alone. Sixty percent of these projects are in the transport sector.”